About LMREI

Who We Are
Legg Mason Real Estate Investors, Inc. (“LMREI”) is a dedicated group of highly experienced professionals in real estate investment and finance. The managers of the LMREI Funds have worked together in real estate finance for more than ten years, and have managed over $4.5 billion in assets. LMREC, LMREC II, and Chesapeake are the fourth, fifth, and sixth funds that the managers have invested in domestic real estate value assets.

Investment Strategy
LMREI focuses on value-add multifamily, office, retail, industrial and other commercial real estate assets located in primary and secondary markets throughout the United States and Canada. LMREI executes transactions in a timely, professional, and responsive manner, providing clients with the ability to meet their investment objectives.

The properties LMREI acquires or finances typically share one or more of the following characteristics:

• Undercapitalized with insufficient capital to complete improvements or to compete in market,
• Under-managed or mismanaged,
• Below market rents or occupancies,
• Acquired below replacement cost,
• Acquired with timing constraints,
• Re-leasing or redevelopment opportunities that could improve a property’s perception and position in the marketplace, such as repositioning a “Class C” building into a “Class B” building.

To meet the broad needs of the commercial real estate community, our financing programs include:

• Value-Add & Stabilized Mezzanine Financing
  Floating rate mezzanine financing for commercial real estate properties and portfolios. This product fills the gap between traditional first mortgage financing and sponsor equity for transactions with value creation opportunities. Experienced sponsors will maintain a majority of the profits via this "cheaper than equity" product.
• HLTV Bridge Financing
  High leverage, floating rate first mortgage bridge financing for commercial real estate properties and portfolios with value creation opportunities. This product provides "one-stop" shopping for debt capital up to 90% of project cost. Perfect for transitional assets with experienced sponsors where one financing execution is desired.
• Preferred Equity
  Preferred equity financing for commercial real estate properties and portfolios with value creation opportunities. This product can resemble a mezzanine loan and be useful when secondary financing is prohibited or can be used for transactions which require an equity partner due to risk profile or deal structure.
• Joint Venture Equity
  Joint venture equity financing for commercial real estate properties and portfolios with value creation opportunities. This product provides traditional joint venture equity (up to 90/10) with hand-crafted profit splits suited to fit the transaction.

About Legg Mason, Inc.
Legg Mason, Inc. (NYSE:LM) is one of the largest asset management firms in the United States, with roots dating back to 1899.

• Legg Mason’s assets under management currently exceeds $1 trillion.
• It is the ninth largest asset manager in the world.
• Through its global asset management services in a variety of investment areas, Legg Mason has long-established and valuable fiduciary relationships with a broad array of investors throughout the world.